DSIJ Mindshare

Market watch: What does the F&O market suggest about trade on January 4?
Shashikant Singh
/ Categories: Trending, Mindshare

Market watch: What does the F&O market suggest about trade on January 4?

The Nifty 50 put call ratio (PCR) closed at 1.5 for the day.

The Indian equity market welcomed 2022 with a bang. Nifty 50 opened with a gain of around 0.19 per cent in today’s trade and built strongly on those early gains. At the end of the day, it closed a shade below 1.6 per cent. What helped this gain was the strong outperformance of banking stocks like ICICI Bank and HDFC Bank. Despite such a rise in the major equity indices, Nifty VIX increased by 1.42 per cent.  

Activity on the F&O front for weekly expiry on January 6 shows 18000 to act as a strong resistance now. Highest open interest contract of 107602 stood at this strike price. The second-highest call option open interest 66814 for Nifty 50 stood at a strike price of 17900. In terms of the highest addition of open interest in the call options front, it was at 17900 in the last trading session. A total of 29688 open interest was added at this strike price. 

In terms of put activity, the highest put writing was seen at a strike price of 17500 (81525) open interest added January 3 2022, followed by 17600 where (49620) open interest was added on January 3 2022. Highest total put open interest (97754) stood at a strike price of 17300. This is followed by a strike price of 17500, which saw a total put option open interest of 91857 contracts.

The Nifty 50 put call ratio (PCR) closed at 1.5 for the day. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish. 

Max pain at the end of today's trade stands at 17500. 

Strike Price

Open Interest (Call)

18000

107602

17900

66814

17700

62267

17800

60762

18500

55429

 

Strike Price

Open Interest(Put)

17300

97754

17500

91857

17000

91054

17200

85705

16800

75106

 

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